Contents of this Issue

Navigation

Page 59 of 69

56 • ROCK products • July 2018 www.rockproducts.com
ECONOMICS
The electric utility/gas plant category
increased 7 percent in April, although
the level of activity was still 44 per-
cent below last year's average monthly
pace. There were four large wind farms
entered as construction starts, with
three located in Iowa valued respec-
tively at $510 million, $224 million
and $107 million, and one located in
Nebraska valued at $304 million.
Nonresidential Building
Nonresidential building in April was
$211.5 billion (annual rate), down 12
percent from March. The institutional
side decreased 12 percent, sliding for
the second month in a row. Educational
facilities fell 13 percent in April after
rising 7 percent in March.
The largest educational facility projects
entered as April starts were the $200
million Chen Institute for Neuroscience
at the California Institute of Technology
in Pasadena, Calif., the $181 million ren-
ovation of a Health and Human Services
research building in Bethesda, Md., a
$133 million high school in the Hous-
ton area, and a $94 million high school
in the Portland, Ore., area.
Healthcare facilities in April dropped
27 percent, retreating for the second
month in a row after a strong February.
The largest healthcare facility project
in April was a $90 million cancer treat-
ment center in Norfolk, Va.
Transportation terminal work also
declined in April, dropping 16 percent.
On the plus side, the public build-
ings category advanced 34 percent,
helped by the start of the $175 million
Franklin County Corrections Center in
Columbus, Ohio.
Also increasing in April were religious
buildings, up 26 percent; and amuse-
ment-related projects, up 3 percent. The
manufacturing plant category plunged
59 percent following a 282 percent
jump in March that included several
large natural gas processing facilities.
April included the start of a $682 mil-
lion tire manufacturing plant in Clinton,
Miss., but there were no other manufac-
turing plants valued at $100 million or
more entered as April starts.
The commercial building categories as
a group provided a relative bright spot
for nonresidential building in April,
rising 5 percent after a 15 percent
decline in March. Office construction
rebounded 18 percent after its 18 per-
cent March slide, with the upward push
coming from the $480 million addition
to the Hudson Commons office building
in New York, plus two data center proj-
ects in Ashburn, Va., valued respectively
at $350 million and $135 million.
Store construction grew 21 percent
in April, while hotel construction
advanced 25 percent. Large hotel proj-
ects entered as April starts were the
$350 million Marriott Hotel at Bonnet
Creek in Orlando and the $125 million
Hyatt Centric Hotel in Philadelphia.
Commercial garages fell 37 percent
in April and warehouse construction
retreated 11 percent. The warehouse
pullback was cushioned by the start
of three Amazon distribution centers
in Euclid, Ohio ($175 million), Saint
Peters, Mo. ($75 million) and Macon,
Ga. ($70 million).
Residential Building
Residential building in April was $303.8
billion (annual rate), down 9 percent.
Multifamily housing declined 20 per-
cent, retreating for the second month
in a row following its improved activity
during the first two months of 2018.
April's volume of multifamily housing
was down 7 percent from the average
monthly pace reported last year.
There were four multifamily proj-
ects valued each at $100 million or
more that reached groundbreaking in
April, compared to 13 such projects in
March. The projects were the $550 mil-
lion Queens Plaza Park Apartments in
Long Island City, N.Y., the $429 million
multifamily portion of a $516 million
mixed-use development in Seattle, and
two multifamily projects in Ft. Lauder-
dale, Fla., valued respectively at $154
million and $150 million.
During the first four months of 2018, total construction starts on an unadjusted
basis were $223.5 billion, down 7 percent from the same period of 2017 (which
included very strong amounts for airport terminals and natural gas pipelines). On
a 12-month moving total basis, total construction starts for the 12 months ending
April 2018 matched the dollar amount that was reported for the prior-year period.
The 7 percent downturn for total construction starts on an unadjusted basis
during the January-April period of 2018 was due to reduced activity for two of
the three main construction sectors. Nonresidential building dropped 18 percent
year-to-date, with commercial building, down 16 percent; institutional building,
down 25 percent; and manufacturing building, up 14 percent.
Nonbuilding construction fell 10 percent year-to-date, with public works, down 5
percent; and electric utilities/gas plants, down 45 percent. Residential building
increased 4 percent year-to-date, with 4 percent gains registered by both single
family and multifamily housing.
By geography, total construction starts during the first four months of 2018
showed this pattern – the Midwest, down 13 percent; the West, down 11 per-
cent; the Northeast, down 8 percent; the South Central, down 5 percent; and
the South Atlantic, down 1 percent.
Additional perspective is made possible by looking at 12-month moving totals,
in this case the 12 months ending April 2018 versus the 12 months ending April
2017. On this basis, total construction starts held steady with the volume of the
previous period. By major sector, nonresidential building dropped 3 percent, with
commercial building, down 8 percent; institutional building, down 3 percent; and
manufacturing building, up 32 percent. Nonbuilding construction rose 1 percent,
with public works, up 5 percent; while electric utilities/gas plants, fell 14 percent.
Residential building grew 3 percent, with single family housing, up 7 percent;
and multifamily housing, down 7 percent.
Year-to-Date